Exactly whose responsibility is it to do the due diligence? Exactly who did not perform proper due diligence? When is it okay to pass off the job of due diligence to someone else? There are going to be many a jury deliberating just such a topic in years to come! . . .
Another lesson to take away from this is that the definition of Diversification needs to be broadened. Investment Diversification must also include diversification among fund managers and companies not just “within the portfolio”.